Trump Lays Out Plan to Privatize Air Traffic Control System

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WASHINGTON (Reuters) - President Donald Trump outlined a plan on Monday to privatize the U.S. air traffic control system to modernize it and lower flying costs, but his proposal drew immediate criticism from Democrats who said it would hand control of a key asset to special interests and big airlines.

Trump’s proposal to spin off air traffic control from the Federal Aviation Administration (FAA) was part of a weeklong White House focus on infrastructure. The administration is looking to shift the spotlight back onto Trump’s agenda and away from a growing probe into alleged ties between his campaign and Russia.

“We’re proposing reduced wait times, increased route efficiency and far fewer delays,” Trump said. “Our plan will get you where you need to go quickly, more reliably, more affordably, and yes, for the first time in a long time, on time.”

Executives from United Airlines, Hawaiian Airlines [HAII.UL], American Airlines and Southwest Airlines, all represented by the Airlines for America lobbying group, attended the Trump speech. The group praised the Trump plan, which most airlines back.

The proposal, which would require congressional approval, is opposed by many Democrats and some Republicans.

The FAA spends nearly $10 billion a year on air traffic control funded largely through passenger user fees, and has spent more than $7.5 billion on next-generation air traffic control reforms in recent years.

Trump said current air traffic reform efforts have failed and were a “total waste of money.”

It is unclear if privatization would speed the rollout of new systems such as satellite-based aircraft tracking that replaces ground radar dating back to World War Two.

Proponents say a private entity could sign contracts with vendors more quickly than if deals are put through the FAA’s procurement process, which also is subject to budget instability.

Opponents, including Delta Air Lines, say the U.S. system is so large that privatization would not save money, and would drive up ticket costs and could create a national security risk. Opponents also say technology upgrades would be sidetracked while the private entity was set up, potentially adding years to awarding contracts.

There also are concerns that airlines would dominate the private-company board and limit access to airports by business jets.

The new systems would represent major wins for U.S. companies that have been positioning for the shift. Technology company Harris Corp is a leading candidate to supply the FAA with real-time aircraft tracking data in partnership with satellite operator Iridium Communications Inc.